“I don’t think the first announcement of the Constitutional Court had such a strong impact in the yields because the government was very quick and good at selling the alternative cuts that would replace those annulled by the judges. The problem with the last ruling is that it has made investors realize that the government has a hard constraint in terms of policy that is preventing it from delivering on its ‘promises’.”

“My concern is that Bernanke’s decision not to taper for now should have had a positive effect on the yields (look at Spain’s and Italy’s despite the Berlusconi situation), but they have barely moved in Portugal…”